Figma Shares Indicated To Open $105/$110
On Thursday, JPMorgan analyst Richard Sunderland revised his rating on Spire Inc. (NYSE: NYSE:SR), moving from a ’Neutral’ stance to ’Overweight’. Accompanying this upgrade, Sunderland increased the price target to $85.00, up from the previous $72.00. The stock, currently trading at $76.91, has shown remarkable strength with a 34.26% return over the past year. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period. The analyst believes Spire is poised to elevate earnings and close its valuation gap, due to favorable developments in Missouri regulation and the positive impact of the newly enacted SB4 legislation.
Sunderland highlighted several factors contributing to the upgraded outlook. The analyst pointed out that the stable winter weather has reduced the risk to the company’s 2025 guidance. He also noted the upcoming intervenor testimony in the Missouri rate case, due on April 23, which is expected to indicate a possible settlement path. Moreover, the passage of SB4 by the Missouri legislature is anticipated to allow future implementation of a test year, which could further benefit the company.
The analyst expressed optimism about the balance of the year for Spire, particularly with regards to the Missouri rate case. Settlement discussions are predicted to intensify over the summer, and Sunderland sees a range of outcomes that could lead to earnings growth beyond the company’s projected 5-7% rate. The company’s strong financial foundation is evident in its impressive dividend history, having raised dividends for 21 consecutive years. With analysts forecasting EPS of $4.52 for FY2025, the company trades at a P/E ratio of 18.87. He suggested that a final order in the rate case, combined with the potential for reduced regulatory lag from filing under a future test year in 2026, marks the beginning of a multi-stage process to increase Missouri’s earned returns and establish more normalized growth from a higher earnings base.
In his analysis, Sunderland acknowledged the company’s historical inconsistencies but indicated that the current circumstances provide a compelling opportunity for Spire to demonstrate improved performance. He cited the combination of regulatory progress and legislative support as key drivers for the company’s future growth prospects.
The upgrade by JPMorgan reflects a more bullish outlook on Spire’s ability to leverage regulatory changes and capitalize on legislative developments to enhance its financial standing and market position. For deeper insights into Spire’s regulatory positioning and comprehensive financial analysis, including 8 additional ProTips and detailed regulatory impact assessments, visit InvestingPro, where you’ll find expert analysis in our exclusive Pro Research Report, part of our coverage of over 1,400 US stocks.
In other recent news, Spire Inc. has seen several notable developments. Mizuho (NYSE:MFG) Securities has raised its price target for Spire to $82, maintaining an Outperform rating, citing positive operational developments, especially in Missouri. Ladenburg Thalmann also upgraded Spire’s stock from Neutral to Buy, setting a new price target of $83, influenced by favorable legislative changes in Missouri and resolved legal issues. Both firms have expressed optimism about Spire’s future financial performance, with Ladenburg’s projections for 2027 and 2028 significantly exceeding average analyst estimates.
Additionally, Spire announced that its President and CEO, Steven L. Lindsey, will resume his duties on February 10, 2025, after a health-related leave of absence. During Lindsey’s absence, Scott E. Doyle, the Executive Vice President and Chief Operating Officer, managed his responsibilities and will continue in his current role upon Lindsey’s return. This transition was documented in a Form 8-K filing with the Securities and Exchange Commission. These developments reflect ongoing changes in Spire’s leadership and operational strategies.
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